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Optimal Finance Daily - Financial Independence and Money Advice
3364: [Part 2] Financial FOMO: What, Why and How To Avoid It by Joel of 5AMJoel on Financial Awareness
00:09:22
Joel explores how Financial FOMO quietly undermines progress by fueling comparison, indecision, and unrealistic expectations
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Go to GoDaddy.comGdNow and look legit. That's GoDaddy.comGdNow new customer purchases Only Products Auto renew separately. See terms on site this is Optimal Finance Daily Financial FOMO what, why and how to Avoid It Part 2 by Joel of 5amjol.com Problems created by FOMO. You may read the story previously mentioned and think that Steve hasn't actually done anything wrong. And he hasn't, really. But there are a few small issues with Steve's thought process that make him his own worst nightmare. Continuing down a path like his can lead to several big issues later. Number one Subconsciously comparing himself to others While Steve loves hearing stories about successful entrepreneurs, in the back of his mind, he's comparing himself to each of them. Their age, their income, their net worth, their brilliant investing strategies. Since there's an unlimited amount of richer, smarter and younger people in the world, Steve is setting himself up to feel subpar for the rest of his life. Number two Analysis paralysis. Steve is eager to learn, so he thinks the more information he can stuff into his brain, the better. The problem here is if Steve doesn't pick a specific strategy and take action, he will never get anywhere. 3. Impulse or emotional investing the opposite of analysis paralysis. One day, Steve might just take Tom's advice and buy Bitcoin when he gets home from the bar. No research, no thought. Just buying so that he doesn't miss out. This is a big financial no, no. And number four, Beware of false prophets. Steve's FOMO alters his vision of reality. He only sees and hears winning stories. In his mind, every person except him is making sound financial decisions and big profits. This is definitely not real life. Similar to browsing someone's Facebook profile, people usually only post their good photos, good stories, and share good times. The bad stuff is hidden, but it doesn't mean it's not there. Can you relate? Does this remind you of anything you've experienced recently? Maybe you have a little financial fomo. The fact is, everyone misses out on something. Nobody can do it all, have it all, learn it all, or know it all. You can't control how quickly the world moves, but what you can control is how you feel about it. You can control your reaction, your response, and your future. Let's now talk about the antidotes to financial FOMO. Financial FOMO 1. Appreciation Think about all the things you do have instead of all the things you don't have, financially speaking. Simply focus on your existing investments that are already serving you well instead of the other million strategies that you've never tried. In Steve's example, he actually already has $800,000 in a brokerage account invested in low cost index funds. He accumulated this the slow and boring way via maxing out his 401k each year. Steve has more money than most people will ever have in their life, yet he still feels like a peasant. Steve's frustration and financial FOMO will continue until he starts appreciating what he already has. 2. Jomo this is the Joy of Missing out for every financial upside, there is an equal invisible downside. Be thankful for the downsides you're missing out on your friends own rental properties and you don't. Instead of feeling bad, you should feel joy. You are missing out on the hundreds of headaches, tenant issues, broken toilets and trash units that landlords have to deal with. Missing out gives you more time to focus on other stuff that matters to you. Think less equals more. 3. Low Information Diet Limit the amount of stuff you let into your brain, especially first thing in the morning. Cut down the amount of news you read, podcasts you listen to, and other people's boasting stories and gossip. Instead, fill your life with real experiences. Good news. Steve eventually uses this tactic. He stopped listening to podcasts in the mornings and instead he spent two hours each day interning for his dad's wealthy friend's company. Steve is happier than ever and getting hands on experience. And number four, stop comparing yourself to others, especially the Mark Zuckerbergs of the world. It's never going to be a fair comparison when you study someone else you're comparing their outsides with your insides. The outside appearance of people, namely rich, famous millionaires and entrepreneurs, will always trump your inside feelings about yourself. You are the only you in this world and the only you that will ever exist. There is no comparison. All roads lead to Rome. No matter what, your path is up the financial mountain. Everyone ends up at the top. Old, wise, wealthy and happy. Enjoy the road you're on or switch to another road if you're truly unhappy. Just don't worry about everyone else's trails. It's impossible to climb a mountain via two routes simultaneously. Rest well knowing that you'll see everyone at the top. You just listened to part two of the post titled Financial what, why and how to Avoid it by joel of5amjoel.com Imagine you're a business owner who has to rely on a dozen different software programs to run your company. Each one is expensive, overly complicated, and worst of all, none of them are connected. Now imagine a platform that could tackle all of your business management needs in one place. That platform you're imagining, It's Odoo. Odoo has all the programs you'll ever need and they're all connected on a single, simple, easy to use software, giving you peace of mind that your business is always being taken care of from every angle. Odoo assists in accounting, marketing, inventory, hr, CRM, manufacturing, and everything in between through its user friendly interface and open source applications. Basically, if your business needs it, Odoo's got it. Odoo sounds pretty amazing, right? So stop wasting your time and money on those expensive, disconnected platforms and let Odoo harmonize your business with simple, efficient software that can handle everything for a fraction of the price. It doesn't get much better than that. So what are you waiting for? Discover how Odoo can take your business to the next level by visiting odoo.com that's o d o o.com odoo modern management made simple time it's always vanishing.
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This article reminded me that part of maintaining a positive mindset about our finances is to not compare ourselves to others. We're all guilty of it. So I for one am grateful for the reminder, while others can provide great inspiration and give us ideas of what's possible with our money. Personal finance is a very personal journey, and it's a lifelong journey that we can make way more enjoyable by celebrating every win, big or small. I like when Joel encourages us here to not compare someone else's outside with our inside. When we perceive someone else succeeding financially, we assume they are living a happy and fulfilling life. But you can never know another person's inner life, and many people surrounded by luxury or financial success are deeply unhappy. While you can't buy real lasting happiness, you can cultivate it through the way you spend your time and energy and the people you surround yourself with. And this is where money plays an important role. It can give you more autonomy over your time and energy, and that might actually be a lot less expensive than you think. And that's a wrap for another Monday show. Have a great rest of your day and start to your week and I'll be back tomorrow as usual, where your optimal life awaits.